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Earnings and Revenue Fall at Cargill

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Earnings and Revenue Fall at Cargill

Earnings and Revenue Fall at Cargill
August 17
09:34 2015

Cargill, US-based food and agribusiness giant, has reported a 13% drop in earnings to $1.58 billion in fiscal 2015 on revenue down 11% to $120.4 billion. Cash flow from operations at $3.82 billion, was up 1% from fiscal 2014.

“While several Cargill businesses generated very strong earnings in fiscal 2015, we lagged results from the prior year and did not meet our own expectations,” says David MacLennan, president and chief executive of Cargill. “The economic environment remains sluggish in many emerging markets where we have invested significantly over the past several years. Even so, we aim for growth and profitability through these cycles. We are moving forward with good progress on changes begun last year to optimize the business portfolio, reduce costs and increase operational effectiveness.”

MacLennan notes that for Cargill, how it achieves results is paramount. “Over the 150 years that Cargill has been in business, we’ve seen big changes in the marketplace, including today’s profound rise in the importance of sustainability. Given Cargill’s broad presence in food and agriculture, we’re in a good position to drive positive change. We want to be the most trusted source of sustainable products and services in our industry.”

Animal Nutrition & Protein posted increased profits for the full fiscal year, with strong performances in global animal nutrition, Central American poultry, and US pork, turkey and egg further processing. The segment executed extremely well, drawing on its global reach, diverse products and services, and lower feed input costs. In the first quarter of fiscal 2016, Cargill agreed to sell its US-based pork business to JBS USA Pork for $1.45 billion, pending regulatory review and approval.

David MacLennan, president and chief executive of Cargill.

David MacLennan, president and chief executive of Cargill.

Full-year earnings in Origination & Processing were up slightly for the year. Recent years’ record-large crops in the Americas have seen the rebuilding of global agricultural commodity stocks, which reduced price volatility and limited market opportunities for many of the segment’s businesses.

Earnings in Food Ingredients & Applications trailed the prior-year period for the full year. Areas of continuing strong performance included Cargill’s salt operations, which met high demand for de-icing products during a harsh north-eastern winter in North America.

The Industrial & Financial Services segment posted an upturn in the fourth quarter, though not for the full year. The energy businesses, especially petroleum, performed significantly better than a year ago in both periods.

David MacLennan says that Cargill has experienced tremendous growth and success during its 150 years. “Our company has a history of rising to challenges, and we continue to do so today. We are focused on improving profitability and restoring growth, while fulfilling our commitment to helping customers thrive and feeding the world sustainably.”

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